Our firm specializes in the process of voluntary disclosure and accompaniment while providing reliable, professional and discreet service.
Our firm specializes in accompanying voluntary disclosure proceedings from the beginning, through the approval of the Tax Authority, and until the end of the process which is expressed by immunity from criminal liability for tax offenses committed.
?What is the Voluntary Disclosure Procedure
A voluntary disclosure process is a voluntary process in which the Tax Authority allows tax payers to look at a their return, on their own initiative, and discover income, profits and capital that have not been duly reported, whether originating in Israel or originating abroad, while paying the taxes as required. A person who performs a voluntary disclosure process while complying with the conditions and is approved by the Tax Authority will enjoy immunity from criminal liability for the tax offenses he may have committed.
In September 2014, the Tax Authority published a new procedure (replacing the old voluntary disclosure procedure), in which the new conditions for voluntary disclosure were published in order to obtain immunity from criminal liability.
A temporary order was issued for a period of one year, which includes two additional tracks on the regular track: “Anonymous track” – which allows the Tax Authority to be approached without disclosing in the first stage the identity of the applicant. As well as a “short track” – a track in which a voluntary disclosure process can be approached in the form of the submission of facility reports – which is possible in situations where income and capital are relatively low.
When it is Recommended to Apply for a Voluntary Disclosure Process
In recent years, there has been an unequivocal trend in which the world is becoming “smaller” – tax shelters are being exposed, and information between banks and tax authorities in other countries is becoming more and more routine. One of the main reasons for the trend is the large amount of resources invested by the US government in reducing the possibility of tax evasion and hiding undisclosed accounts by means of legislation and pressure on financial entities, causing a chain reaction and exposing information to tax authorities worldwide and in Israel as well.
Only recently has the UBS affair begun to reveal hundreds of undisclosed accounts of Israeli citizens.
If you wish to arrange unregistered funds in foreign countries, whether inherited or deposited there at your own initiative, voluntary disclosure is the solution for you. If you want to sleep better at night after you have removed the fear of criminal liability, it is strongly recommended that you apply for a voluntary disclosure before the income tax will come to you.
Our firm specializes in the initiation and execution of voluntary disclosure procedures. Please contact our office today to discuss the matter.